Yield for assets is often calculated over at least one-day periods, a problem that blockchain composability could address, according to the asset manager.
Franklin Templeton, an investment management company with $1.53 trillion in assets under management, has debuted a feature that offers investors yield down to the second when holding tokenized assets.
According to a Tuesday announcement, the “Intraday Yield” feature will allow investors to accrue yield proportional to the time they hold a tokenized security, even if it’s transferred before the day’s end. In addition, investors can earn yield on non-banking days, including holidays and weekends.
The feature will be integrated into Franklin Templeton’s tokenization platform Benji. The company said it can potentially improve the crypto industry’s current model of calculating yield over a longer period.
“[…] Intraday Yield is designed to solve a century-old inefficiency in traditional finance: the delayed and rigid nature of yield calculation and distribution,” Roger Bayston, head of Digital Assets at Franklin Templeton, told Cointelegraph.
Yield is calculated at varying intervals depending on the asset class. While it’s typically expressed in annual terms, payouts can be made in scheduled increments. In some cases, higher yields may be tied to holding the asset for a longer period.
“In most legacy systems, yield is only calculated at the end of the trading day and distributed monthly, meaning that investors that transfer or trade during a single session often miss out on the proportional dividend or interest earnings tied to their actual holding time,” Bayston said.
The company is behind one of the largest tokenized treasury funds, with about $750 million in total assets under its Franklin OnChain U.S. Government Money Fund.
Related: Franklin Templeton launches Bitcoin, Ether index ETF
Demand for asset tokenization climbs in 2025
Tokenizable real-world, yield-bearing assets include debt instruments such as US Treasurys and corporate bonds, as well as equities issued by individual companies. According to RWA.xyz data, the market capitalization of tokenized assets reached $23.14 billion on June 9, up from $15.75 billion in early January, representing a 46.92% increase year to date.
Other asset managers backing tokenized funds include BlackRock and VanEck. Combined, those two companies manage over $2.94 billion in tokenized Treasurys as of June 9.
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